On October 2, 2024, German Chancellor Olaf Scholz called for the rapid conclusion of the trade agreement between the European Union (EU) and Mercosur, despite opposition from some EU member states. In a speech in Berlin to the German Federation of Wholesale Trade (BGA), Scholz emphasized the need for 'pragmatism and flexibility' as negotiations continue.
Scholz stated that the majority of EU member states, including Spain and Italy, support the agreement politically. However, he acknowledged resistance from certain countries, particularly those in the agricultural sector, which fear competition from South American imports.
The Chancellor deemed it 'unacceptable' that the EU has not finalized new trade agreements given the current geopolitical situation. He stressed that the negotiations with Mercosur, which have been ongoing for over two decades, are essential for diversifying and strengthening the resilience of the European economy. The proposed agreement aims to eliminate most tariffs between the two regions, creating a trade space of over 700 million consumers.